9911796707
TMI Blog2012 (1) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is a tax resident of USA and, therefore, the provisions contained in the DTAA are applicable. However, there is no need to go into the provisions of the DTAA because of the provision contained in Section 90(2) of the Act. This provision provides that where the Central Government has entered into an agreement with the Government of any country outside India under sub-section (1) for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall applied to the extent they are more beneficial to that assessee. It has to be granted the benefit of the Act under which no liability to tax can be fastened on the assessee. This decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... network of telecommunication satellites located in outer space and was engaged in active business of transmitting telecommunication signals to/from its customers, viz., T.V. channels, NICNET and Internet Service Providers (ISPs) for various purposes including telecommunication, broadcasting and transfer of image/voice data, etc. The Assessing Officer has treated the receipts of the assessee company as royalty as per the provisions of Section 9(1)(vi), 9(1) (vii) of the Act and applied Article 12(7) (b) of the tax treaty and held that such payments are taxable. He computed the receipts of the assessee from Indian customers at Rs. 34,98,16,199/- and the said amount has been taxed at 10% and the tax has been computed at Rs. 3,49,81,619/-. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9th July, 2011. Learned CIT (A) has got confirmation from the Assessing Officer of the fact that whether facts for the present year are similar to the facts for Assessment Year 2006-07 and Assessing Officer vide letter dated 11th June, 2011 addressed to CIT (A) has confirmed the facts of the present year are similar to the facts for Assessment Year 2007-08 for which the ITAT has decided the issue in favour of the assessee on the basis of the decision of Hon'ble Delhi High Court in the case of Asia Satellite Telecommunication Company Ltd. On the basis of order of ITAT in the case of the assessee for Assessment Year 2007- 08 and the decision of Hon'ble Delhi High Court, learned CIT (A) has held that no income of the assessee is taxable in Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a under sub-section (1) for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall applied to the extent they are more beneficial to that assessee. The assessee is found to have incurred no liability to tax under the Act. Therefore, even if the provisions of the treaty go against the assessee, it has to be granted the benefit of the Act under which no liability to tax can be fastened on the assessee. Accordingly, ground Nos. 1 to 5 are allowed. 6. It was further submitted that the order of the Tribunal has been confirmed by Hon'ble Delhi High Court in departmental appeal vide order dated 19th August, 2011 in ITA No.977/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
